Mastering Market Entry: Data-Driven Strategies
So we always have conversations with brands when they launch in the U.S.: do we go local and target specific states, or do we go broad? There are always competing schools of thought on this. It’d be great to get your thoughts now.
Yeah. For most brands, there’s a strong argument for being more specific with your entry into the U.S. You can hyper-localise and go through this big process, state by state. However, I’d really strongly argue that for most brands, that approach just does not represent value from a business perspective.
You’re much better off getting data back on what’s working and replicating what’s working in the UK over in the U.S. Copy and paste as best you can, with minimal cost, to see whether what you have in place is going to work there. If not, you can tweak it to make it work. That’s a much better strategy, in my opinion, than trying to build a best-guess strategy for a very specific entry into the U.S., whether that’s focusing on a specific state or area. Finding out that you’re wrong can lead to huge costs and lost opportunities for most brands. I really advise starting broader and simpler and letting the data lead you.
I don’t think a lot of brands really realise what they have at their disposal. Tools like Meta, Google, and TikTok are essentially machine learning algorithms that tell you who’s interested in your product. Meta, in particular, and TikTok are very much product discovery tools; you’re showing things to people, and they learn who’s interested in your product.
Narrowing down to just California because it’s a big market is often misguided. People usually think, “I’m going to launch in New York and California!” and that’s it. They just see how it goes because, yes, they are big markets. But you might miss out on the opportunity to get lower-cost conversions elsewhere in the country, where probably fewer people are advertising as well.
You have this chance to learn from Meta, which is showing your product to a diverse audience and figuring out who converts, regardless of which state they’re in. You might find you’re getting great traction in the Midwest—unexpected insights can arise.
It’s the same when you’re launching a new ad. You might go in thinking, “This idea is going to crush,” and then get humbled when you actually launch it. So you’re better off testing a bunch of different things simultaneously and letting the data guide you toward where you’re getting results, rather than going one by one.
Yeah, and then you can hone in on what you’ve learned. Yeah, totally.